Why You Need Workers’ Compensation Insurance for Your Employees

Did you know that if you operate a business in Arizona, you are required to carry workers’ compensation insurance for your employees? 

What is Workers’ Compensation Insurance?

If an employee is injured at work, the employee is entitled to receive certain benefits—including medical benefits—and sometimes, compensation, job retraining, and supportive medical care.  Under Arizona law, it is mandatory for employers to obtain workers’ compensation insurance to cover these costs in the event an employee injury occurs. 

Who Is Required to Carry Workers’ Compensation Insurance?

In Arizona, all employers who hire employees are required to carry workers’ compensation insurance—even if they have only one employee.  This is true regardless of whether employees are part-time, full-time, minors, or family members.  Note that workers’ compensation is not required for independent contractors.

How Do You Obtain Workers’ Compensation Insurance?

You can obtain workers’ compensation insurance from any insurance company that is licensed to offer it in the State of Arizona. 

What Happens If You Don’t Carry Workers’ Compensation Insurance?

If you don’t carry workers’ compensation insurance, you are putting your business at risk for covering costs for an injured employee’s medical benefits and compensation.  An injured employee may file a workers’ compensation claim with the Industrial Commission of Arizona, or in some cases, a civil lawsuit. 


The Industrial Commission of Arizona runs the state’s workers’ compensation system.  You can find resources about workers’ compensation on their WEBSITE and in this FAQ GUIDE.

Last Updated:  July 14, 2022





Why You Need Workers’ Compensation Insurance for Your Employees

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